Milk and cream market in Ethiopia

Earlier Report Observations

The market volume of not concentrated, not sweetened milk and cream in Ethiopia rose from 3 960 thousand tons in 2018 to a peak of 4 574 thousand tons in 2022, then fell to 4 169 thousand tons in 2023. The significant increase in 2022 was driven by the government's expansion of formal milk-collection capacity through dairy cooperatives and a push to raise the share of cross-bred cows in the national herd, which bolstered domestic supply. The subsequent decline in 3 coincided with high inflation of around 30%, which compressed household incomes and reduced demand for dairy products.

State-led initiatives under the National Dairy Development Strategy, aiming for 17% annual milk production growth, have focused on improving genetics, feed, and herd management. These efforts contributed to the emergence of a new urban dairy segment, with approximately 29 000 cows supplying Addis Ababa, creating a source of locally produced milk and cream. Persistent challenges, including shortages of quality concentrate feed and high post-harvest losses, continue to constrain the overall market volume.

Production milk and cream in Ethiopia

In kind, 2017-2020, K t

On a global scale, Ethiopia ranked as the 30th largest producer of milk and cream between 2017 and 2020.

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

In 2020, Ethiopia produced 4 226 thousand tonnes of milk and cream, marking a moderate decrease of 7.1% compared to the previous year. Over the period from 2017 to 2020, production grew by 5%, which translates to an annualized growth rate of 1.6%. The lowest production level was recorded in 2018 at 3 960 thousand tonnes, while the peak occurred in 2019 with 4 547 thousand tonnes. The most significant year-on-year increase was observed in 2019, when production surged by 14.8%.

Annual dynamics of production in Ethiopia in kind, 2017-2020, K t

Exports milk and cream from Ethiopia

Market analysis data show that Ethiopia did not export any milk and cream from 2017 to 2020.

Imports milk and cream to Ethiopia

Imports in kind, t

Following a two-year decline, milk and cream imports into Ethiopia rebounded in 2020. The country imported 130.3 tonnes of milk and cream that year, representing a 13.9% increase compared to 2019. Over the entire 2017–2020 period, imports fell by 36.8%, corresponding to an annualized decline of 14.2%. The lowest import volume was recorded in 2019 at 130.3 tonnes, which also saw the sharpest drop of 42.6%.

Annual dynamics of product's imports to Ethiopia in kind, 2017-2020, t

From 2017 to 2020, Belgium, France, and Somalia were the leading suppliers of milk and cream to Ethiopia in terms of volume. Belgium accounted for 43.7% of imports, France for 21.2%, and Somalia for 8.9%. Together, these three countries made up 73.9% of Ethiopia's total milk and cream imports by volume during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Ethiopia in kind, 2017-2020

Imports in value, K $ US

In 2020, Ethiopia imported milk and cream worth 173.9 thousand US dollars, a decrease of 42.5% from the previous year. Over the 2017–2020 span, imports declined by 42.5%, with a compound annual growth rate (CAGR) of -16.8%. The largest year-on-year increase occurred in 2019, when import value rose by 22.8%.

Annual dynamics of product's imports to Ethiopia in value, 2017-2020, K $ US

Between 2017 and 2020, Belgium, France, and Germany were the primary suppliers of milk and cream to Ethiopia in value terms. Belgium contributed 39.1% of import value, France 29.3%, and Germany 6.4%. Collectively, these three countries represented 74.7% of Ethiopia's total milk and cream import value over these years.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Ethiopia in value, 2017-2020